A stable, well-functioning financial market for allA stable, well-functioning financial market for allRecent news
We list here recent news from the banking sector.
2015
Environmental and sustainability perspectives in credit granting to companies
Finansinspektionen (FI) has been commissioned by the Government to report on the bank's internal rules regarding credit granting to companies from the perspective of the environment and sustainability. If necessary, FI shall present proposals for measures that can be included in the banks' credit granting process to promote such a perspective.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
FI Analysis 3: Liquidity in the market for covered bonds
The market for covered bonds is important for bank funding and therefore financial stability. The requirements for banks to hold more capital and liquidity for their operations have been tightened since the financial crisis. These requirements affect the banks' costs of holding securities in the trading book and so their costs of acting as market makers.
FI increases transparency in capital requirement for Swedish banks
FI today disclosed for the first time the actual capital requirements for the ten largest Swedish banks and credit institutions at the end of the third quarter of 2015. This is to increase clarity with regard to the effects of FI's capital requirements, including Pillar 2.
Measures against risks from household indebtedness
Summary of the speech by Finansinspektionen's Director General Erik Thedéen at the Centre for Business and Policy Studies' seminar on the economic situation on 19 November 2015.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Capital needs of Swedish banks as of the second quarter 2015
Finansinspektionen publishes the capital needs of the ten largest Swedish banks and credit institutions as of the end of the second quarter 2015.
Recognition of other Member States' countercyclical buffer rates
Finansinspektionen decides to recognize countercyclical buffer rates up to 2.5 per cent that are set by the designated authority of another EEA country. The firms concerned shall use these buffer rates to calculate their firm specific countercyclical capital buffers.
The future structure of banks' capital requirements
At the Financial Stability Council meeting of 15 June, Finansinspektionen presented its views on the future structure of banks' capital requirements.
Driving forces behind household indebtedness
In this report, Finansinspektionen, Sveriges Riksbank and the Swedish National Debt Office present a general description of the driving forces behind the rise in household indebtedness. A central conclusion in the report is that indebtedness is largely linked to developments on the housing market.
Swedish banks' systemic importance (O-SII)
FI intends to comply with the European Banking Authority's (EBA) guidelines on criteria to assess other systemically important institutions (O-SIIs).
Capital needs of Swedish banks as of the first quarter 2015
Finansinspektionen publishes the capital needs of the ten largest Swedish banks and credit institutions as of the end of the first quarter 2015.
Handelsbanken receives a remark and is ordered to pay an administrative fine
Handelsbanken has not complied with the money laundering rules. The bank has not conducted risk assessments for all of its customers or obtained sufficient information about customers and their business relations. The bank's system for reviewing transactions has also been deficient.
Nordea receives a warning and is ordered to pay the maximum administrative fine
There have been major deficiencies in Nordea's work to prevent money laundering. This means there is a high probability that if people have tried to launder money or finance terrorism that they could have done so without Nordea having been able to detect this.
FI publishes methods for assessing capital requirements for three important risk types
Finansinspektionen (FI) establishes methods for assessing Pillar 2 capital requirements for three types of risk: credit-related concentration risk, interest rate risk in the banking book and pension risk.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Capital needs of Swedish banks as of the fourth quarter 2014
Finansinspektionen publishes today the capital needs of the ten largest Swedish banks and credit institutions as of the end of the fourth quarter 2014.
2014
FI intends to implement a partial waiver for covered bonds
The European Banking Authority (EBA) has published its opinion regarding the Danish FSA's proposal of a partial waiver from the application of Article 129 (1)(c) of the Capital Requirements Regulation (CRR). Finansinspektionen will also implement the partial waiver within its jurisdicition.
FI's methods for assessing individual types of risk within Pillar 2
This memorandum describes FI's methods for assessing the capital adequacy requirement within the framework of Pillar 2 for three different types of risk.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Leverage ratio requirement for Swedish banks
Finansinspektionen (Swedish Financial Supervisory Authority – FI) considers that a leverage ratio requirement may serve an important function for establishing financial stability in Sweden as a back-stop, which sets a floor for how low the capital adequacy requirement can fall in relation to the banks' gross assets.
Swedish banks pass the European stress test
FI has tested the resilience of the major Swedish banks to a sharp deterioration in the economy. The study is part of the extensive stress test of 123 European banks coordinated by EBA.
Capital requirements for Swedish banks
Finansinspektionen presents positions to ensure that the Swedish banking system stands more robustly equipped to withstand future financial crises.
Skandiabanken: adverse remark issued and administrative fine of SEK 10 million imposed
There have been inadequacies in the investment advice that Skandiabanken Aktiebolag has provided through tied agents. The bank has not complied with the rules applicable for receiving commission nor dealt with conflicts of interest in the correct manner.
Authorisation for a bank merger in Skåne
Finansinspektionen has decided to approve the reorganisation of Sparbanken 1826.
Capital requirements for Swedish banks
On 3 April, the Government presented a bill regarding strengthened capital adequacy rules.
Supervision of the financial infrastructure works well
Finansinspektionen's and The Riksbank's joint internal audit has assessed the supervision and oversight of the financial infrastructures in Sweden on the basis of the "Principles for financial market infrastructures” (PFMIs) which Finansinspektionen use in its supervision and The Riksbank in its oversight.
FI withdraws the authorisation of Exchange Finans
Finansinspektionen withdraws the authorisation to conduct financing business of Exchange Finans Europe.
2013
Bank interest rates and lending, Q3 2013 (Summary)
In this report, Finansinspektionen (FI) describes the banks' adaptations to higher capital requirements and the effects on households and non-financial firms.
Risks in the financial system 2013
Swedish banks are relatively strong, but they continue to be vulnerable to disruptions on the financial markets, and the development within the Euro zone continues to represent a risk to the Swedish financial system.
Supervision Report 2013
Many of the development trends in today’s financial markets raise important issues for FI. For consumers, greater mobility and increasingly complex financial products represent not only more opportunities but also higher risks. FI needs to bring attention to these risks and resolve them.
Decision to implement a risk weight floor for mortgages
FI is implementing a risk weight floor of 15 per cent for Swedish mortgages. The floor will be implemented as a supervisory measure within Pillar 2.
The Swedish Mortgage Market
This report is based on Finansinspektionen's (FI's) third large mortgage survey. The survey is based on comprehensive material from the eight largest banks in Sweden.
Implementation of the European supervisory authorities’ guidelines and recommendations
Finansinspektionen finds that guidelines from the European supervisory authorities addressed to competent authorities or financial market participants are equivalent to Swedish general guidelines.
2012
Bank interest rates and lending, Q4 2012 (summary)
Both the banks' funding cost and lending rates to households and corporations fell sharply during the fourth quarter of 2012 while the banks' margins on new mortgages increased slightly. Lending to Swedish corporations and households increased during the fourth quarter, but at a slower rate than before. During 2013 Finansinspektionen (FI) will investigate potential measures for how credit institutions can increase the awareness of their customers for how the actual lending rates for mortgages are determined.
Bank interest rates and lending, Q3 2012
Swedish banks have already largely adapted to the forthcoming requirements regarding capital adequacy and access to liquidity. The stricter requirements involve a cost, but also help improve stability in the financial system. On the whole, the forthcoming requirements will generate positive effects for the national economy.
Risks in the financial system 2012
Finansinspektionen’s (FI’s) 2012 risk report 2012 continues to focus on unease on financial markets, where the greatest risk to the Swedish financial system is still a deepened sovereign debt crisis in Europe. Because of low market rates, life insurance undertakings are under pressure, and FI now sees a risk of consumers ending up in a squeeze as the firms review their commitments. This year too, FI views the financial advice market with concern. In this market, consumers are being invited to invest in complex products while advisors receive commissions.
Bank interest rates and lending, Q2 2012
The growth rate of lending to households and corporations is decreasing, but remains positive and is clearly higher than the corresponding figure for the eurozone. Banks' margins on mortgages increased in the same period, according to the second quarterly report.
Supervision Report 2012
The issues presented in this year’s Supervision Report stem from the work on financial consumer protection, financial stability and the requirements on company owners and management. In addition, the report discusses the increased international work, primarily within the EU.
Market risks management
During 2011, Finansinspektionen (FI) investigated how 11 financial companies market risks management. ‘Market risk’ refers to the risk of loss-incurring value changes in assets and liabilities due to fluctuations in interest rates, foreign exchange rates, stock prices and commodity prices.
Bank interest rates and lending, Q1 2012
In order to strengthen financial stability and avoid future financial crises, new regulations for the banking sector are being prepared. The regulations include higher capital adequacy requirements.
The Swedish Mortgage Market
Loan-to-value ratios decreased for the first time in 10 years and the share of households with new loans over 85 percent has fallen by fifty per cent since 2009. These are some of the findings in Finansinspektionen’s follow-up of the mortgage cap.
2011
Risks in the financial system 2011
Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
Bonuses: Are companies following the rules?
Finansinspektionen (FI) received an assignment from the Government to report on the implementation of the EU Recommendation on remuneration in the financial services sector, the measures taken to ensure compliance with the new rules and how affected companies have adapted to the recommendations.
Supervision Report 2011
Finansinspektionen's annual Supervision Report discusses areas in which fundamental issues with regard to supervision and regulatory development have risen to the forefront and in turn have resulted in new lessons and conclusions.
2010
Risks in the financial system 2010
Finansinspektionen believes the risk level in the Swedish financial sector is lower than last year. Both Sweden’s economy and the situation on the financial market have improved. However, the uncertainty present in foreign markets represents a potential threat to Sweden’s development.
Lessons learned from supervision and regulatory development
FI's annual Supervision Report describes the lessons learned from the financial crisis as well as more general issues regarding consumer protection.
2009
Unwarranted concern for account fraud
The concern for being victimised by account fraud is greatly unwarranted, according to FI’s survey of 2,898 private persons. The survey, conducted during 2008, found that an estimated 1 per cent of the adult population was defrauded that year. The majority, 84 per cent, of those with claims were fully or partially refunded. The expectations of being refunded were considerably lower, however.
Risks in the financial system 2009
Finansinspektionen is charged with ensuring that the financial system isstable and efficient and that consumer protection is adequate. We carry outthese assignments by conducting supervision of financial companies, whichincludes business intelligence, the granting of licences, preparation of egulations,operational supervision with controls of how companies act andpotential interventions.
The households’ financial capability
The majority of the Swedish households have a strong personal financial position and save for the long-term. Most of them have access to a bank account and payment services and three out of four pay by the Internet. This is according to the responses of 1,309 households regarding personal finances. The survey was conducted for FI by Svenskt Kvalitetsindex during the first quarter of 2009.
The banks’ lending for commercial real estate in Sweden
Based on input reported statistical material, we find that the current financial crisis has yet to make any obvious impression in the form of insolvency and credit losses in lending for commercial real estate.
The banks’ financial advice and the law
The overall conclusion is that there is a good census of opinion between bank customers and advisors about how the advisory service should work. Both advisors and customers feel that the advice lives up to the legal requirements.
Development on the mortgage market
Finansinspektionen (FI) has surveyed the development in the banks’ lending for single-family houses and tenant-owner’s flats. At the end of 2008, Swedish households had approximately SEK 1,800 billion in mortgage loans. The investigated banks’ lending constitutes just under 90 per cent of this.
Reclassification of financial assets
Five out of eight banks investigated utilised new opportunities to assess certain financial assets at amortised cost instead of fair value in connection with the interim reports for Q3 2008.
2008
IT disruptions at a constant, high level
IT disruptions are increasing at some companies and decreasing at others. On the whole, the number of disruptions remains at a constant, high level.
The Swedish banks can manage the recession (2008:18)
The four Swedish big banks have managed relatively well so far in the international bank crisis. Financing risks has been the greatest threat to Swedish banks during the autumn's turbulence. Thanks to measures by the Riksbank (Swedish central bank) and the Swedish National Debt Office, these risks have been managed to a great extent until the financing markets begin to function normally again.
Not everyone can pay
Not everyone has access to payment services such as giro services or internet banking. It is mainly people with a record of non-payment and those without Swedish civic registration or coordination numbers who lack access to such services. Those who are denied payment services are forced to pay their bills through the banks’ counter service which incurs high costs and is time inefficient.
The responsibility for the payment system
That the payment system functions and can withstand both internal andexternal incidents such as fire, flooding, power failures, etc. is of greatimportance to the national economy.
Market turmoil and the Swedish banks
The Swedish banks have managed relatively well in the international turbulence prevailing on the financial markets. The four major banks made record profits in 2007 and they all have good financial strength. There are, however, risks in the near future as well as in the long-term. Although these risks are relatively serious, no individual risk is considered to pose a threat to the stability. FI continues to closely monitor the development.
The development on the mortgage loan market
The banks’ risk exposures to the Swedish mortgage loan market have increased due to higher mortgage levels and long amortisation periods. The mortgage lending to Swedish households constitutes the largest exposure in the majority of the banks.
Trading activities in banks and investment firms
According to Finansinspektionen’s investigation, eight scrutinised banks and investment firms primarily have good routines for managing and appraising the trading risks for products that are difficult to assess. However, more can be done in some areas. The undertakings should improve their routines for independent assessment and control of traders’ prices. Some of the undertakings should allocate more resources for their risk control in order to attain a stronger position in terms of business.
SMS loan companies to routinely identify their customers
The SMS loan companies report that they have improved their routines to identify their customers after an investigation by Finansinspektionen.
2007
Stability of the Swedish financial sector (2007:16)
Swedish banks are only marginally exposed to the assets that are affected most by this fall's market turbulence. Rather, the increased risks are coupled to increased lending in the Baltic states. This is the finding of FI's report The stability of the Swedish financial sector, which will be submitted to the Government today.
Government bond market – the need for regulation and supervision
This report discusses Finansinspektionen’s view on the need for regulation andsupervision in the government bond market. FI’s level of ambition in thesupervision of the fixed income market has long been lower than that of itssupervision of the stock market. The reasons for this are primarily historical andno well-documented analysis exists. The need for such an analysis has arisen asthe supervision of financial markets has developed in Europe. In conjunctionwith the introduction of MiFID (the EC Markets in Financial InstrumentsDirective) the need for regulation and supervision in the fixed income markethas been discussed at European level.
The process for new issues and initial public offerings
This report describes the process that precedes a new issue or initial publicoffering. It clarifies various phenomena that investors should be aware of whenparticipating in this type of transaction, allowing them to understand andevaluate the offer in its entirety.
Criminal attacks on internet banking
Finansinspektionen's study shows an increase in the number of attacks on online bank accounts, although in relation to the number of Internet transactions the scope of the problem is limited.
Credit market companies and consumer protection
Problems in certain credit market companies with permission to receive household deposits* such as Custodia and Allmänna Kapital are the background to the review carried out by FI. Its main purpose has been to investigate whether the problems that have come to light in those firms now declared bankrupt, exist openly or latently in other credit market companies which take household deposits. FI has also had the aim of investigating whether these firms are complying with financial regulations in a more general sense.
